Zimbabwe: China's friend in need?

China has signed a $700 million-loan aimed at rejuvenating Zimbabwe's agricultural sector

Zimbabwe mainly imports mobile communication hardware from China

(CNN) -- Shunned by Western investors, economically ravaged Zimbabwe has turned its sights to the East to improve its finances.

International isolation and a bad credit record have forced Zimbabwean president Robert Mugabe to seek economic support from China, the world's second-largest economy.

Since 2002, the European Union and the United States have imposed sanctions on the mineral-rich southern African country amid reports of human rights abuses, political violence and the controversial land reform policy targeting white farmers.

China has moved to occupy some of the void created by the exodus of Western businesses and now Zimbabwe's once-empty stores are filled with Chinese products.

"We are happy to have these people coming to Zimbabwe opening factories and shops, because when you compare to last time, there were more unemployed youths," says Never Jacob, a Zimbabwean store manager.

"For me, I can say (of) the coming of Chinese to Zimbabwe, we appreciate their coming," he adds.

China has been doing business with Zimbabwe for years -- Chinese foreign minister Yang Jiechi has said in the past that the two economies "are cut out for each other."

I can say (of) the coming of Chinese to Zimbabwe, we appreciate their coming.--Never Jacob, store manager, Zimbabwe

The Zimbabwean Minister of Investment Promotion says the Chinese are mainly interested in mineral resources, including diamonds.

Last year, Zimbabwe's efforts to improve its fragile economy seemed to be given a boost when the country was allowed to sell diamonds from its controversial Marange fields.

There are currently five companies -- two of which are Chinese -- with licenses to operate in the diamond fields near the Mozambique border.

These mines are under export controls following allegations of human rights abuses by Mugabe's Zanu-PF party. China is said to be complying with those international controls.

Zimbabwe's finance minister Tendai Biti, whose party, the Movement for Democratic Change, formed a unity government with Mugabe's party two years ago, says that diamonds have not yet provided the financial boost that many would have expected, contributing only $35 million to the country's coffers last year.

Mugabe's Zanu-PF party denies accusations of looting and abuses, while Biti blames smugglers for robbing the country of much-needed revenue.

"These diamonds are alluvial, so you can literally mine them with a spoon or the sole of your heel," says Biti.

"They are located in a place that is 66,000 hectares, so that's half the size of the United Kingdom, so what it means is that there is porousness -- anyone can virtually walk in there and pick stones," he adds.

China has been silent on the issue, choosing rather stick to its policy of non-interference in the internal matters of other countries.